Supplementary Materials for Interim Financial Results for the Fiscal Year Ending February 2027

Summary of Results

The interim results for the fiscal year ending February 2027 showed steady performance with revenue at 1,959 million yen, a 5.3% increase year-over-year. However, operating income declined to 99 million yen (-7.0%) due to higher promotional expenses and costs associated with new store openings and relocations; ordinary income and net income also trailed the prior year. The full-year forecast remains revenue of 4,500 million yen, operating income of 330 million yen, and net income of 220 million yen, with current progress at just under 30%. A dividend of 5 yen per share is planned as shareholder return.

Outlook and Capital Allocation

The company will continue new store openings and relocations and strengthen cross-brand promotions, aiming to expand EC and store channels centered on ATAOLAND+. While organizing intellectual property and customer information related to the former EC site, aggressive investment in sales promotion is expected to be a key driver of sustained growth. Efforts to expand ILEMER and ATAO brands overseas and to push forward new store openings will continue, targeting long-term brand expansion and earnings stabilization.